Trend Following

Breadth thrust can trigger before traditional trend-following buy signals because it does not require a fully established trend. Dow Theory for the 21st Century and the Blay Timing Indicator are presented as trend-following tools. The article says absence of thrust is not enough reason to reject later trend-following buy signals. Trend-following systems require evidence that a new trend has begun, which can make them enter late. Trend following means buying after an uptrend exists and selling when the trend turns down. Dow Theory for the 21st Century and the Blay Timing Indicator are the main trend-following cornerstones. Trend following is the dominant mode in the described framework. Trend-following tools are designed to participate in large trends rather than forecast every short-term correction. Trend-following tools guide market exposure by evaluating trend, leverage, and risk appetite.